Longboat Energy Announces Operational Update

Source: www.gulfoilandgas.com 7/26/2021, Location: Europe

Longboat Energy, the emerging full-cycle North Sea E&P company with a portfolio of significant, nearterm, low-risk exploration assets, is pleased to provide an operational update.

Egyptian Vulture Exploration Well
Longboat has been informed by the operator, Equinor ASA, that the Egyptian Vulture prospect (Longboat working interest: 15%) is on-track to spud in late August 2021 using the West Hercules semi-submersible drilling rig.

The well is targeting gross mean prospective resources of 103mmboe1 with further potential upside to bring the total to 208mmboe1. The Geological Chance of Success associated with this prospect is 25%1 with the key risk being related to reservoir quality/thickness.

The well is expected to take up to 4 weeks to drill with a pre-carry net cost to Longboat of c.$5 million (c.$1m post tax). Upon success, there is the potential to provide low-CO2 blending gas to the nearby Equinor operated infrastructure (Asgard) allowing for the possibility of rapid monetization.

Egyptian Vulture is an Upper Cretaceous turbidite play bounded within a regional graben located in the prolific Halten-Dønna Terrace. The prospect has been significantly de-risked by a strong AVO anomaly analogous to the large Hades discovery made by Faroe Petroleum in 2018 along with several other nearby Cretaceous discoveries also made by the Longboat management team (Solberg, Rodriguez, T-Rex).

Extensive Exploration Programme
Egyptian Vulture marks the first of an anticipated seven well exploration programme which will be drilled by Longboat over the next 18 months on the Norwegian Continental Shelf (“NCS”) targeting net mean prospective resource potential of 104MMboe1 with additional 220 MMboe1 of upside and follow-on prospectivity.

The drilling programme has the potential to create a Net Asset Value of over $1 billion based on precedent transactions on the NCS for development assets.

The next well in the programme is scheduled to commence in mid-September and will target the Rodhette prospect (Company 20%) using the deep water Scarabeo 8 semi-submersible drilling rig. This is a proven Jurassic Play in the Hammerfest Basin with a potential 30km tie-back distance to the Goliat Field for early potential monetisation.

The full list of the licenses, working interests and resource estimates are set out in the background notes below.

Completion Process and Qualification
Longboat is pleased to report that the process for seeking qualification as a licence holder of oil and gas assets on the NCS is progressing well with the required interviews completed with the NPD and PSA. Once approved, this would see Longboat become only one of 38 companies licenced to hold oil and gas assets on the NCS versus over 130 companies licenced in the UK.

The Company currently expects to complete the acquisitions before 30 September 2021 but notes that this remains subject to Norwegian government approvals. The process does not impact the timing of or Longboat’s participation in the Egyptian Vulture and Rodhette exploration wells.

New Business Opportunities
The announcement of the initial farm-ins and successful equity raise has significantly increased the industry’s interest and confidence in partnering with Longboat. The Company intends to capitalise on this momentum to continue to pursue value accretive acquisitions in line with its strategy to build a full-cycle E&P company focused on the North Sea.

The Company will release further announcements as and when appropriate. More details on Egyptian Vulture and Longboat’s seven well exploration drilling programme can be found on the Company’s newly updated website: www.longboatenergy.com.

Helge Hammer, Chief Executive of Longboat, commented:
“We are excited at the prospect of drilling our first exploration well and can now look forward to a busy period of almost continuous drilling and frequent value catalysts during the next 18 months with a combined upside value potential in excess of $1 billion.

“Exploration activity in Norway is picking up and during the first six months of 2021, a total of 17 exploration wells have been completed, resulting in eight discoveries. On Egyptian Vulture we are partnering with one of the most successful explorers on the NCS and a successful well could add more than 15 million boe of net contingent resources with significant monetisation opportunities.

“Our plan remainsto build Longboat in to a full-cycle, North Sea E&P company. We believe the momentum built by the initial acquisitions will enable us to take advantage of the increasing number of opportunities we are seeing in the market.”

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